The Philippines’ economic growth in 2021 and 2022 will be supported by sustained growth in public infrastructure spending, improving consumer confidence, and progress in the national coronavirus disease (COVID-19) vaccination program, according to a report released Wednesday by the Asian Development Bank (ADB).

ADB maintained its forecast for the Philippines’ gross domestic product (GDP) growth at 4.5 percent in 2021 and 5.5 percent in 2022 in its Asian Development Outlook (ADO) 2021 Update.

The report notes signs of a gradual recovery in the country’s economy, with the upturn in domestic demand and favorable external trends aligned with the ADO’s projections announced in April.

The main risk to the outlook is the spread of newer, contagious COVID-19 variants, which may result in the return of stricter containment measures and stall economic activity.

“The economy has regained its footing and is on the right growth path. But the recovery remains fragile due to the threat posed by more infectious COVID-19 variants,” said ADB Philippines Country Director Kelly Bird.

“Vaccination remains key to the economy’s safe reopening. We are actively supporting the government’s efforts to achieve its national vaccination targets through our health-related assistance,” said Bird. ADB